Amplify Energy Corp. (NYSE: AMPY) (“Amplify” or the “Company”)
announced today its pro forma(1) and reportable(2) operating and
financial results for the third quarter of 2019.
Key Amplify Third Quarter Operational
Highlights
- During the third quarter this year we generated the following:
- Pro forma(1) daily production of 32.7 MBoe/d, in line with
midpoint guidance of 32.6 MBoe/d
- Reportable(2) net cash provided by operating activities of
$(7.4) million for the quarter
- Pro forma(1) adjusted EBITDA of $31.5 million, in line with
midpoint guidance of $31 million
- Pro forma(1) free cash flow of $3 million that was at the high
end of the guidance range of $(2) million to $4 million
- Paid initial quarterly dividend of $0.20 per share or $8.2
million in aggregate on September 18, 2019
- Net Debt to Last Twelve Months (“LTM”) pro forma(1) EBITDA of
1.7x as of September 30, 2019
- As of November 1, 2019, net debt was $267 million, inclusive of
$11 million of cash on hand
“This quarter has been an exciting one for
Amplify, as our team has worked tirelessly to integrate the
Midstates assets and systems into our own. I’m very pleased
to report that the effort has been extremely successful, and we are
on track to be fully integrated by mid-November,” said Ken Mariani,
President and Chief Executive Officer of Amplify. “I’m also
excited to report that our Bairoil expansion project was completed
on schedule and we are steadily bringing online previously shut-in
wells as planned, with production expected to steadily increase
over the next twelve to eighteen months”
Mr. Mariani continued, "Amplify’s third quarter
results were positively impacted by our cost control initiatives,
which resulted in lease operating expenses and capital spending
that were both below the low end of our guidance range. In
addition, with the merger and the majority of our 2019 capital
expenditures behind us, we are now in a position to demonstrate the
robust free cash flow generation potential of our platform.”
(1) Pro forma numbers include Amplify and Midstates results as
though the companies were combined for the full period (2)
Reportable numbers include Amplify and Midstates results starting
in August 2019 following closing of the merger
Key Pro Forma(1) and Reportable(2)
Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable |
Reportable |
|
|
Pro Forma |
Pro Forma |
|
|
|
|
Third Quarter |
Second Quarter |
|
|
Third Quarter |
Second Quarter |
|
|
$ in millions |
|
2019 |
|
2019 |
|
|
2019 |
2019 |
|
|
Average
daily production (MBoe/d) |
|
28.8 |
|
21.1 |
|
|
32.7 |
33.1 |
|
|
Total
revenues |
|
$73.0 |
|
$59.5 |
|
|
$80.5 |
$82.8 |
|
|
Total
assets |
|
$914.6 |
|
$722.7 |
|
|
NA |
NA |
|
|
Net
Income (loss) |
|
$5.2 |
|
$18.6 |
|
|
$6.8 |
$23.4 |
|
|
Adjusted EBITDA (a non-GAAP financial measure) |
$27.9 |
|
$19.1 |
|
|
$31.5 |
$28.1 |
|
|
Net
debt (3) |
|
$270.6 |
|
$156.3 |
|
|
$270.6 |
$226.3 |
|
|
Net
debt / LTM Adjusted EBITDA |
|
NM |
|
1.4x |
|
|
1.7x |
1.2x |
|
|
Net
cash provided by (used in) operating activities |
|
($8.5) |
|
$22.5 |
|
|
NA |
NA |
|
|
Total
capital |
|
$21.4 |
|
$25.3 |
|
|
$24.1 |
$36.0 |
|
|
|
|
|
|
|
|
|
|
|
(3) As of September 30, 2019 and June 30,
2019, respectively
Midstates Merger Integration
Update
On August 6, 2019, the Company announced the
closing of the merger with Midstates Petroleum Company, Inc.
The combined company changed its name to Amplify Energy Corp., and
currently trades on the New York Stock Exchange under the ticker
symbol “AMPY”. As previously announced, the Company expected
to achieve annual synergies in excess of $21 million as a result of
the merger. With the integration substantially complete,
Amplify has already achieved the majority of these cost savings and
anticipates full synergy realization by the first quarter of
2020.
Dividend and Share Repurchase Program
Update
Amplify’s recurring quarterly dividend of $0.20
per share is expected to be paid on December 18, 2019 to
shareholders of record as of the close of business on December 4,
2019. This implies a dividend yield of approximately 11%
based on the closing share price of $7.48 on November 1, 2019.
Amplify also initiated an open market share
repurchase program at the closing of the merger, with Board
approval to repurchase up to $25.0 million of the Company’s
outstanding shares of common stock. Since the inception of the open
market share repurchase program, the Company has repurchased
approximately 2.4 million shares of common stock at an average
price of $6.06 for a total cost of approximately $14.5 million
(inclusive of fees). As a result, Amplify has $10.5 million
of repurchase capacity under the program.
Revolving Credit Facility Update and
Liquidity
Amplify’s fall 2019 borrowing base
redetermination process will be finalized during the fourth
quarter, and the Company anticipates a decrease in its borrowing
base due to a reduction in bank price forecasts. Despite this
decrease, Amplify will maintain more than sufficient liquidity
moving forward and will be generating significant free cash flow
that will further increase its liquidity position.
As of November 1, 2019, Amplify had total debt
outstanding of $278 million under its revolving credit facility,
with a current borrowing base of $530 million. Amplify’s
liquidity was $261 million, consisting of $11 million of cash on
hand and available borrowing capacity of $250 million (including
the impact of $1.65 million in outstanding letters of
credit).
Bairoil NGL Volumes Sold as Condensate
UpdateIn the third quarter of 2019, Amplify decided to
modify the process for stripping out NGLs at its Bairoil field due
to weak NGL pricing. While the Bairoil NGL stream has
historically been very heavy (primarily C5), recently the
extraction of the lighter liquids has resulted in a less valuable
product in the market. Due to this inefficiency, the Company
has decided to strip out less of the lighter liquids from the gas
stream and sell the remaining product as condensate instead of
NGLs. This resulted in a reduction in volume of approximately
90 Bbls/d (approximately 10% of Bairoil NGL volumes).
However, the price received for the condensate (WTI less $12 per
barrel) is approximately 25-30% higher than would otherwise be
received as a barrel of NGLs.
These adjustments are reflected in the Company’s
third quarter results with oil production above guidance
expectations and NGL production below guidance expectations.
The adjustments will also be reflected in oil and NGL
differentials, as oil differentials will be wider due to the
condensate sales and the removal of Bairoil’s heavy NGLs will
reduce the Company’s NGL price realization relative to WTI.
We will continue to monitor the market for NGLs in the Rockies
area, and we retain the flexibility to revert to selling NGLs if
the market for those products improves in the future.
Comparison of Third Quarter Pro Forma(1)
Guidance vs Actual Pro Forma(1) Results
|
|
|
|
|
|
|
3Q 2019 Guidance (2) |
|
3Q 2019 |
|
|
|
|
|
|
|
Low |
|
High |
|
Actuals |
|
|
|
|
|
|
Net Average Daily
Production |
|
|
|
|
|
Oil (MBbls/d) |
10.6 |
- |
11.8 |
|
12.1 |
NGL (MBbls/d) |
6.0 |
- |
6.6 |
|
5.2 |
Natural Gas (MMcf/d) |
85.9 |
- |
95.1 |
|
92.8 |
Total
(MBoe/d) |
30.9 |
- |
34.3 |
|
32.7 |
|
|
|
|
|
|
Commodity Price
Differential / Realizations (Unhedged) |
|
|
|
|
|
Oil Differential ($ / Bbl) |
$1.20 |
- |
$1.50 |
|
$2.21 |
NGL Realized Price (% of WTI NYMEX) |
28% |
- |
34% |
|
21% |
Natural Gas Realized Price (% of Henry Hub) |
75% |
- |
85% |
|
72% |
|
|
|
|
|
|
Gathering, Processing
and Transportation Costs |
|
|
|
|
|
Oil ($ / Bbl) |
$0.40 |
- |
$0.60 |
|
$0.34 |
NGL ($ / Bbl) |
$2.00 |
- |
$2.30 |
|
$2.28 |
Natural Gas ($ / Mcf) |
$0.30 |
- |
$0.40 |
|
$0.35 |
Total ($ /
Boe) |
$1.20 |
- |
$1.80 |
|
$1.49 |
|
|
|
|
|
|
Average
Costs |
|
|
|
|
|
Lease Operating ($ / Boe) |
$11.90 |
- |
$13.20 |
|
$11.75 |
Taxes (% of Revenue) (3) |
6.5% |
- |
7.0% |
|
7.1% |
Recurring Cash General and Administrative ($ / Boe) (4) |
$2.50 |
- |
$2.80 |
|
$2.60 |
|
|
|
|
|
|
Net Cash Provided by
Operating Activities ($MM) (5) |
|
$27 |
|
|
NA |
|
|
|
|
|
|
Adjusted EBITDA ($MM)
(6) |
$28 |
- |
$34 |
|
$31 |
Cash Interest Expense ($MM) |
$3 |
- |
$5 |
|
$4 |
Capital Expenditures ($MM) |
$26 |
- |
$30 |
|
$24 |
Free Cash Flow ($MM)
(6) |
($2) |
- |
$4 |
|
$3 |
|
|
|
|
|
|
(2) Guidance based on NYMEX strip pricing as of
July 26, 2019; Average prices of $56.51 / Bbl for crude oil and
$2.25 / Mcf for natural gas for second half of 2019 (3)
Includes production, ad valorem and franchise taxes (4)
Recurring cash general and administrative cost guidance excludes
reorganization expenses, severance costs, acquisition and
divestiture costs and non-cash compensation (5) Net Cash
Provided by Operating Activities guidance does not include certain
restructuring and reorganization expenses or changes in working
capital (6) Adjusted EBITDA and Free Cash Flow are non-GAAP
financial measures. Please see “Use of Non-GAAP Financial Measures”
for a description of Adjusted EBITDA and Free Cash Flow and the
reconciliation to the most comparable GAAP financial measure
Bairoil Plant Expansion Project
Update
The Bairoil plant expansion project was
completed in October, which was consistent with the Company’s
anticipated project completion timing. A significant amount of the
final costs for the expansion were incurred in the third quarter of
2019, with the remaining $3.6 million to be incurred in the fourth
quarter of 2019. Amplify has initiated the additional gas
recycling at the Bairoil plant, and will provide an update on
production in a future earnings call. As a reminder, the
Company’s previous guidance on production called for oil production
to increase by approximately 900 Bbl/d, with the increase to be
fully realized over a twelve to eighteen-month period following the
project completion.
Third Quarter Production and Capital
Spending Update
During the third quarter of 2019, Amplify’s pro
forma(1) daily production was 32.7 MBoe/d, which was slightly above
the midpoint of the guidance range of 30.9 to 34.3 MBoe/d for the
quarter. Third quarter production was strong despite weather
impacts on the Company’s Oklahoma operations and lower gas
production in the Eagle Ford due to high gas sales line
pressure. As discussed above, beginning in the third quarter
of 2019 non-processed liquids at Bairoil were sold as condensate
instead of NGLs, and as such, all production out of Bairoil will
now be accounted for as oil moving forward. In addition,
Amplify has restructured its hedge positions to reflect this change
in the production mix and protect economics.
Amplify’s pro forma(1) capital spend for the
third quarter was approximately $24 million, which was below the
low end of quarterly guidance of $26 million to $30 million.
This is primarily driven by lower than expected maintenance capital
costs at the offshore California and East Texas operations related
to certain capital workovers and infrastructure projects. Of
the $24 million, the majority of the capital spend of approximately
$16 million (68% of total) was attributed to the plant expansion
project at Bairoil, which came online during October.
Amplify’s fourth quarter capital spend guidance
range is $8 million to $12 million, which will primarily include
the remaining capital of $3.6 million for the Bairoil plant
expansion and $3 million on the ongoing rod-lift conversion program
in Oklahoma. In addition, Amplify anticipates spending a
small portion of its fourth quarter capital budget to participate
in a drilling opportunity in East Texas. The Company believe
this to be a low risk opportunity with attractive economics and
will allow for further evaluation and delineation in this
area.
Fourth Quarter 2019
Guidance
The following guidance included in this press
release is subject to the cautionary statements and limitations
described under the "Forward-Looking Statements" caption at the end
of this press release. Amplify's fourth quarter 2019 guidance
is based on its current expectations regarding capital expenditure
levels and on the assumption that market demand and prices for oil
and natural gas will continue at levels that allow for economic
production of these products.
A summary of the guidance is presented
below:
|
|
|
|
|
4Q 2019E (1) |
|
|
|
|
|
Low |
|
High |
|
|
|
|
Net Average Daily
Production |
|
|
|
Oil (MBbls/d) |
11.2 |
- |
12.4 |
NGL (MBbls/d) |
5.0 |
- |
5.6 |
Natural Gas (MMcf/d) |
81.8 |
- |
90.6 |
Total
(MBoe/d) |
29.9 |
- |
33.1 |
|
|
|
|
Commodity Price
Differential / Realizations (Unhedged) |
|
|
|
Oil Differential ($ / Bbl) |
$2.00 |
- |
$2.30 |
NGL Realized Price (% of WTI NYMEX) |
20% |
- |
25% |
Natural Gas Realized Price (% of Henry Hub) |
70% |
- |
80% |
|
|
|
|
Gathering, Processing
and Transportation Costs |
|
|
|
Oil ($ / Bbl) |
$0.30 |
- |
$0.50 |
NGL ($ / Bbl) |
$2.10 |
- |
$2.40 |
Natural Gas ($ / Mcf) |
$0.30 |
- |
$0.40 |
Total ($ /
Boe) |
$1.20 |
- |
$1.80 |
|
|
|
|
Average
Costs |
|
|
|
Lease Operating ($ / Boe) |
$11.75 |
- |
$12.75 |
Taxes (% of Revenue) (2) |
6.5% |
- |
7.5% |
Recurring Cash General and Administrative ($ / Boe) (3) |
$2.30 |
- |
$2.60 |
|
|
|
|
Net Cash Provided by
Operating Activities ($MM) (4) |
|
$29 |
|
|
|
|
|
Adjusted EBITDA ($MM)
(5) |
$30 |
- |
$35 |
Cash Interest Expense ($MM) |
$3 |
- |
$5 |
Capital Expenditures ($MM) |
$8 |
- |
$12 |
Free Cash Flow ($MM)
(5) |
$16 |
- |
$21 |
(1) Guidance based on NYMEX strip pricing as of
October 25, 2019; Average prices of $55.87 / Bbl for crude oil and
$2.40 / Mcf for natural gas for fourth quarter of 2019(2) Includes
production, ad valorem and franchise taxes(3) Recurring cash
general and administrative cost guidance excludes reorganization
expenses, severance costs, acquisition and divestiture costs and
non-cash compensation(4) Net Cash Provided by Operating Activities
guidance does not include certain restructuring and reorganization
expenses or changes in working capital(5) Adjusted EBITDA and Free
Cash Flow are non-GAAP financial measures. Please see “Use of
Non-GAAP Financial Measures” for a description of Adjusted EBITDA
and Free Cash Flow and the reconciliation to the most comparable
GAAP financial measure
Hedging Update Since Amplify’s
previous hedge update on August 6, 2019, the Company has made
further additions to its hedge positions. The following table
reflects the hedged volumes under Amplify’s commodity derivative
contracts and the average fixed or floor prices at which production
is hedged for October 2019 through December 2022, as of November 6,
2019.
Amplify Energy
Corp. |
|
|
|
|
|
|
|
|
Summary Commodity
Hedge Position |
|
|
|
|
|
|
|
|
September 30,
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2020 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Natural Gas
Swaps: |
|
|
|
|
|
|
|
|
Average Monthly Volume
(MMBtu) |
|
|
1,643,333 |
|
|
600,000 |
|
|
|
337,500 |
|
|
|
150,000 |
Weighted Average Fixed Price
($) |
|
$ |
2.84 |
|
$ |
2.53 |
|
|
$ |
2.51 |
|
|
$ |
2.49 |
|
|
|
|
|
|
|
|
|
Natural Gas
Collars: |
|
|
|
|
|
|
|
|
Two-way collars |
|
|
|
|
|
|
|
|
Average Monthly Volume (MMBtu) |
|
|
- |
|
|
520,000 |
|
|
|
162,500 |
|
|
|
- |
Weighted Average Floor Price ($) |
|
$ |
- |
|
$ |
2.64 |
|
|
$ |
2.58 |
|
|
$ |
- |
Weighted Average Ceiling Price ($) |
|
$ |
- |
|
$ |
2.96 |
|
|
$ |
2.84 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Three-way collars |
|
|
|
|
|
|
|
|
Average Monthly Volume (MMBtu) |
|
|
202,667 |
|
|
76,000 |
|
|
|
- |
|
|
|
- |
Weighted Average Ceiling Price ($) |
|
$ |
3.45 |
|
$ |
3.45 |
|
|
$ |
- |
|
|
$ |
- |
Weighted Average Floor Price ($) |
|
$ |
2.65 |
|
$ |
2.65 |
|
|
$ |
- |
|
|
$ |
- |
Weighted Average Sub-Floor Price ($) |
|
$ |
2.15 |
|
$ |
2.15 |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Natural Gas Basis
Swaps: |
|
|
|
|
|
|
|
|
Average Monthly Volume
(MMBtu) |
|
|
- |
|
|
600,000 |
|
|
|
500,000 |
|
|
|
- |
Weighted Average Spread
($) |
|
$ |
- |
|
$ |
(0.46 |
) |
|
$ |
(0.40 |
) |
|
$ |
- |
|
|
|
|
|
|
|
|
|
Oil
Swaps: |
|
|
|
|
|
|
|
|
Average Monthly Volume
(Bbls) |
|
|
180,333 |
|
|
153,050 |
|
|
|
116,250 |
|
|
|
30,000 |
Weighted Average Fixed Price
($) |
|
$ |
55.25 |
|
$ |
57.54 |
|
|
$ |
56.05 |
|
|
$ |
55.32 |
|
|
|
|
|
|
|
|
|
Oil
Collars: |
|
|
|
|
|
|
|
|
Two-way collars |
|
|
|
|
|
|
|
|
Average Monthly Volume (Bbls) |
|
|
76,000 |
|
|
14,300 |
|
|
|
- |
|
|
|
- |
Weighted Average Floor Price ($) |
|
$ |
55.00 |
|
$ |
55.00 |
|
|
$ |
- |
|
|
$ |
- |
Weighted Average Ceiling Price ($) |
|
$ |
63.85 |
|
$ |
62.10 |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Three-way collars |
|
|
|
|
|
|
|
|
Average Monthly Volume (MMBtu) |
|
|
61,200 |
|
|
30,500 |
|
|
|
- |
|
|
|
- |
Weighted Average Ceiling Price ($) |
|
$ |
63.14 |
|
$ |
65.75 |
|
|
$ |
- |
|
|
$ |
- |
Weighted Average Floor Price ($) |
|
$ |
53.75 |
|
$ |
50.00 |
|
|
$ |
- |
|
|
$ |
- |
Weighted Average Sub-Floor Price ($) |
|
$ |
43.75 |
|
$ |
40.00 |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
NGL
Swaps: |
|
|
|
|
|
|
|
|
Average Monthly Volume
(Bbls) |
|
|
72,000 |
|
|
65,425 |
|
|
|
22,800 |
|
|
|
- |
Weighted Average Fixed Price
($) |
|
$ |
29.96 |
|
$ |
25.20 |
|
|
$ |
24.25 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Amplify posted an updated hedge presentation
containing additional information on its website,
www.amplifyenergy.com, under the Investor Relations section.
Quarterly Report on Form
10-Q
Amplify’s financial statements and related
footnotes will be available in its Quarterly Report on Form 10-Q
for the quarter ended September 30, 2019, which Amplify expects to
file with the Securities and Exchange Commission on November 6,
2019.
Conference Call
Amplify will host an investor teleconference
today at 10:00 a.m. Central Time to discuss these operating and
financial results. Interested parties may join the webcast by
visiting Amplify's website, www.amplifyenergy.com, and clicking on
the webcast link or by dialing (833) 883-4379 at least 15 minutes
before the call begins and providing the Conference ID:
8498729. The webcast and a telephonic replay will be
available for fourteen days following the call and may be accessed
by visiting Amplify’s website, www.amplifyenergy.com, or by dialing
(855) 859-2056 and providing the Conference ID: 8498729.
About Amplify Energy
Amplify Energy Corp. is an independent oil and
natural gas company engaged in the acquisition, development,
exploration and production of oil and natural gas properties.
Amplify’s operations are focused in Oklahoma, the Rockies, offshore
California, East Texas / North Louisiana and South Texas. For
more information, visit www.amplifyenergy.com.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that Amplify expects, believes
or anticipates will or may occur in the future are forward-looking
statements. Terminology such as “will,” “would,” “should,”
“could,” “expect,” “anticipate,” “plan,” “project,” “intend,”
“estimate,” “believe,” “target,” “continue,” “potential,” the
negative of such terms or other comparable terminology are intended
to identify forward-looking statements. Amplify believes that these
statements are based on reasonable assumptions, but such
assumptions may prove to be inaccurate. Such statements are
also subject to a number of risks and uncertainties, most of which
are difficult to predict and many of which are beyond the control
of Amplify, which may cause Amplify’s actual results to differ
materially from those implied or expressed by the forward-looking
statements. Please read the Company’s filings with the
Securities and Exchange Commission, including “Risk Factors” in its
Annual Report on Form 10-K, and if applicable, its Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, and other
public filings and press releases for a discussion of risks and
uncertainties that could cause actual results to differ from those
in such forward-looking statements. All forward-looking
statements speak only as of the date of this press release.
All forward-looking statements in this press release are qualified
in their entirety by these cautionary statements. Amplify
undertakes no obligation and does not intend to update or revise
any forward-looking statements, whether as a result of new
information, future results or otherwise.
Use of Non-GAAP Financial
Measures
This press release and accompanying schedules
include the non-GAAP financial measures of Adjusted EBITDA and Free
Cash Flow. The accompanying schedules provide a
reconciliation of these non-GAAP financial measures to their most
directly comparable financial measure calculated and presented in
accordance with GAAP. Amplify’s non-GAAP financial measures
should not be considered as alternatives to GAAP measures such as
net income, operating income, net cash flows provided by operating
activities or any other measure of financial performance calculated
and presented in accordance with GAAP. Amplify’s non-GAAP
financial measures may not be comparable to similarly titled
measures of other companies because they may not calculate such
measures in the same manner as Amplify does.
Adjusted EBITDA. Amplify
defines Adjusted EBITDA as net income or loss, plus interest
expense; income tax expense; depreciation, depletion and
amortization; impairment of goodwill and long-lived assets;
accretion of asset retirement obligations; losses on commodity
derivative instruments; cash settlements received on expired
commodity derivative instruments; losses on sale of assets;
unit-based compensation expenses; exploration costs; acquisition
and divestiture related expenses; amortization of gain associated
with terminated commodity derivatives, bad debt expense; and other
non-routine items, less interest income; gain on extinguishment of
debt; income tax benefit; gains on commodity derivative
instruments; cash settlements paid on expired commodity derivative
instruments; gains on sale of assets and other, net; and other
non-routine items. Adjusted EBITDA is commonly used as a
supplemental financial measure by management and external users of
Amplify’s financial statements, such as investors, research
analysts and rating agencies, to assess: (1) its operating
performance as compared to other companies in Amplify’s industry
without regard to financing methods, capital structures or
historical cost basis; (2) the ability of its assets to generate
cash sufficient to pay interest and support Amplify’s indebtedness;
and (3) the viability of projects and the overall rates of return
on alternative investment opportunities. Since Adjusted
EBITDA excludes some, but not all, items that affect net income or
loss and because these measures may vary among other companies, the
Adjusted EBITDA data presented in this press release may not be
comparable to similarly titled measures of other companies.
The GAAP measure most directly comparable to Adjusted EBITDA is net
cash provided by operating activities.
Free Cash Flow. Amplify
defines Free Cash Flow as Adjusted EBITDA, less cash income taxes;
cash interest expense; and total capital expenditures. Free
cash flow is an important non-GAAP financial measure for Amplify’s
investors since it serves as an indicator of the Company’s success
in providing a cash return on investment. The GAAP measure
most directly comparable to distributable cash flow is net cash
provided by operating activities.
Selected Operating and Financial Data
(Tables)
|
|
|
|
|
|
|
|
Amplify
Energy Corp. |
|
|
|
|
|
Selected Financial
Data - Unaudited |
|
|
|
|
|
Statements of Operations Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
|
Ended |
|
Ended |
|
(Amounts in $000s,
except per share data) |
|
September 30, 2019 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
Oil and natural gas sales |
|
$ |
72,426 |
|
|
$ |
59,485 |
|
|
|
Other
revenues |
|
|
533 |
|
|
|
47 |
|
|
|
Total revenues |
|
|
72,959 |
|
|
|
59,532 |
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses: |
|
|
|
|
|
|
Lease operating
expense |
|
|
32,977 |
|
|
|
26,292 |
|
|
|
Gathering,
processing and transportation |
|
|
4,459 |
|
|
|
4,391 |
|
|
|
Exploration |
|
|
3 |
|
|
|
6 |
|
|
|
Taxes other than
income |
|
|
5,135 |
|
|
|
3,464 |
|
|
|
Depreciation,
depletion and amortization |
|
|
15,617 |
|
|
|
12,913 |
|
|
|
General and
administrative expense |
|
|
27,034 |
|
|
|
10,566 |
|
|
|
Accretion of asset
retirement obligations |
|
|
1,428 |
|
|
|
1,332 |
|
|
|
Realized (gain)
loss on commodity derivatives |
|
|
(4,109 |
) |
|
|
631 |
|
|
|
Unrealized (gain)
loss on commodity derivatives |
|
(24,616 |
) |
|
|
(23,624 |
) |
|
|
(Gain) loss on
sale of properties |
|
|
- |
|
|
|
- |
|
|
|
Other, net |
|
|
224 |
|
|
|
34 |
|
|
|
Total costs and expenses |
|
|
58,152 |
|
|
|
36,005 |
|
|
|
|
|
|
|
|
|
|
Operating Income
(loss) |
|
|
14,807 |
|
|
|
23,527 |
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense): |
|
|
|
|
|
|
Interest expense,
net |
|
|
(5,276 |
) |
|
|
(4,422 |
) |
|
|
Other income
(expense) |
|
|
(104 |
) |
|
|
- |
|
|
|
Loss on lease |
|
|
(4,237 |
) |
|
|
- |
|
|
|
Total Other Income
(Expense) |
|
|
(9,617 |
) |
|
|
(4,422 |
) |
|
|
|
|
|
|
|
|
|
|
Income (loss)
before reorganization items, net and income taxes |
|
5,190 |
|
|
|
19,105 |
|
|
|
|
|
|
|
|
|
|
Reorganization
items, net |
|
|
(33 |
) |
|
|
(464 |
) |
|
Income tax benefit
(expense) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
5,157 |
|
|
$ |
18,641 |
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
Basic and diluted
earnings (loss) per share |
|
$ |
0.15 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Data - Unaudited |
|
|
|
|
|
Operating Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
|
Ended |
|
Ended |
|
(Amounts in $000s,
except per share data) |
|
September 30, 2019 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
Oil and
natural gas revenue: |
|
|
|
|
|
|
Oil Sales |
|
$ |
55,011 |
|
$ |
41,685 |
|
|
NGL Sales |
|
|
4,306 |
|
|
5,336 |
|
|
Natural Gas
Sales |
|
|
13,109 |
|
|
12,464 |
|
|
Total oil and natural gas sales - Unhedged |
|
$ |
72,426 |
|
$ |
59,485 |
|
|
|
|
|
|
|
|
|
Production
volumes: |
|
|
|
|
|
|
Oil Sales -
MBbls |
|
|
1,017 |
|
|
696 |
|
|
NGL Sales -
MBbls |
|
|
383 |
|
|
258 |
|
|
Natural Gas Sales
- MMcf |
|
|
7,482 |
|
|
5,803 |
|
|
Total - MBoe |
|
|
2,647 |
|
|
1,921 |
|
|
Total - MBoe/d |
|
|
28.8 |
|
|
21.1 |
|
|
|
|
|
|
|
|
|
Average
sales price (excluding commodity derivatives): |
|
|
|
|
|
Oil - per Bbl |
|
$ |
54.11 |
|
$ |
59.85 |
|
|
NGL - per Bbl |
|
$ |
11.25 |
|
$ |
20.65 |
|
|
Natural gas - per
Mcf |
|
$ |
1.75 |
|
$ |
2.15 |
|
|
Total - per Boe |
|
$ |
27.37 |
|
$ |
30.95 |
|
|
|
|
|
|
|
|
|
Average
unit costs per Boe: |
|
|
|
|
|
|
Lease operating
expense |
|
$ |
12.46 |
|
$ |
13.69 |
|
|
Gathering,
processing and transportation |
|
$ |
1.68 |
|
$ |
2.29 |
|
|
Taxes other than
income |
|
$ |
1.94 |
|
$ |
1.80 |
|
|
General and
administrative expense |
|
$ |
10.21 |
|
$ |
5.50 |
|
|
Depletion,
depreciation, and amortization |
|
$ |
5.90 |
|
$ |
6.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Data - Unaudited |
|
|
|
|
|
|
Balance
Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in $000s,
except per share data) |
|
September 30, 2019 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets |
|
$ |
76,915 |
|
$ |
57,086 |
|
|
Property and
equipment, net |
|
|
804,357 |
|
|
642,686 |
|
|
Total assets |
|
|
914,629 |
|
|
722,684 |
|
|
Total current
liabilities |
|
|
59,762 |
|
|
60,830 |
|
|
Long-term
debt |
|
|
278,000 |
|
|
175,000 |
|
|
Total
liabilities |
|
|
434,584 |
|
|
317,597 |
|
|
Total equity |
|
|
480,045 |
|
|
405,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Data - Unaudited |
|
|
|
|
|
Statements of Cash Flows Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
|
Ended |
|
Ended |
|
(Amounts in $000s,
except per share data) |
|
September 30, 2019 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
$ |
(7,411 |
) |
|
$ |
22,499 |
|
|
Net cash provided
by (used in) investing activities |
|
|
(9,514 |
) |
|
|
66,925 |
|
|
Net cash provided
by (used in) financing activities |
|
|
5,631 |
|
|
|
(95,598 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Operating and Financial Data (Tables) |
|
|
|
|
|
|
Reconciliation of
Unaudited GAAP Financial Measures to Non-GAAP Financial
Measures |
|
|
|
|
Adjusted EBITDA and Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
|
|
Ended |
|
Ended |
|
|
(Amounts in $000s,
except per share data) |
|
September 30, 2019 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Cash Provided from
Operating Activities: |
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
(7,411 |
) |
|
$ |
22,499 |
|
|
|
|
Changes in working
capital |
|
|
5,616 |
|
|
|
(10,862 |
) |
|
|
|
Interest expense,
net |
|
|
5,276 |
|
|
|
4,422 |
|
|
|
|
Gain (loss) on
interest rate swaps |
|
|
(448 |
) |
|
|
(578 |
) |
|
|
|
Cash settlements
paid (received) on interest rate swaps |
|
(113 |
) |
|
|
(45 |
) |
|
|
|
Amortization and
write-off of deferred financing fees |
|
512 |
|
|
|
(266 |
) |
|
|
|
Reorganization
items, net |
|
|
33 |
|
|
|
464 |
|
|
|
|
Exploration
costs |
|
|
3 |
|
|
|
6 |
|
|
|
|
Acquisition and
divestiture related costs |
|
|
12,833 |
|
|
|
3,458 |
|
|
|
|
Severance
payments |
|
|
6,389 |
|
|
|
50 |
|
|
|
|
Plugging and
abandonment cost |
|
|
278 |
|
|
|
77 |
|
|
|
|
Non-cash loss on
office lease |
|
|
4,237 |
|
|
|
- |
|
|
|
|
Other |
|
|
719 |
|
|
|
(154 |
) |
|
|
Adjusted
EBITDA: |
|
$ |
27,924 |
|
|
$ |
19,071 |
|
|
|
|
Pro forma
adjustments |
|
|
3,547 |
|
|
|
9,054 |
|
|
|
Pro forma Adjusted
EBITDA: |
|
$ |
31,471 |
|
|
$ |
28,125 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow to Net Cash Provided from
Operating Activities: |
|
|
|
|
Adjusted
EBITDA: |
|
$ |
27,924 |
|
|
$ |
19,071 |
|
|
|
|
Less: Cash
interest expense |
|
|
4,205 |
|
|
|
3,786 |
|
|
|
|
Less Capital
expenditures |
|
|
21,353 |
|
|
|
25,291 |
|
|
|
Free Cash
Flow: |
|
$ |
2,366 |
|
|
$ |
(10,006 |
) |
|
|
|
Add: Pro forma
adjustments |
|
|
825 |
|
|
|
(2,993 |
) |
|
|
Pro forma Free
Cash Flow: |
|
$ |
3,192 |
|
|
$ |
(12,999 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Operating and Financial Data (Tables) |
|
|
|
|
|
|
Reconciliation of
Unaudited GAAP Financial Measures to Non-GAAP Financial
Measures |
|
|
|
|
Adjusted EBITDA and Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months |
|
Three
Months |
|
|
|
|
|
|
Ended |
|
Ended |
|
|
(Amounts in $000s,
except per share data) |
|
September 30, 2019 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Income
(Loss): |
|
|
|
|
|
|
Net income
(loss) |
|
$ |
5,157 |
|
|
$ |
18,641 |
|
|
|
|
Interest expense,
net |
|
|
5,276 |
|
|
|
4,422 |
|
|
|
|
Depreciation,
depletion and amortization |
|
|
15,617 |
|
|
|
12,913 |
|
|
|
|
Accretion of asset
retirement obligations |
|
|
1,428 |
|
|
|
1,332 |
|
|
|
|
(Gains) losses on
commodity derivatives |
|
|
(28,725 |
) |
|
|
(22,993 |
) |
|
|
|
Cash settlements
on expired commodity derivatives |
|
4,109 |
|
|
|
(631 |
) |
|
|
|
Acquisition and
divestiture related costs |
|
|
12,833 |
|
|
|
3,458 |
|
|
|
|
Reorganization
items, net |
|
|
33 |
|
|
|
464 |
|
|
|
|
Share/unit-based
compensation expense |
|
|
1,178 |
|
|
|
1,375 |
|
|
|
|
Non-cash loss on
office lease |
|
|
4,237 |
|
|
|
- |
|
|
|
|
Exploration
costs |
|
|
3 |
|
|
|
6 |
|
|
|
|
Loss on settlement
of AROs |
|
|
224 |
|
|
|
34 |
|
|
|
|
Bad debt
expense |
|
|
165 |
|
|
|
- |
|
|
|
|
Severance
payments |
|
|
6,389 |
|
|
|
50 |
|
|
|
|
Adjusted
EBITDA: |
|
$ |
27,924 |
|
|
$ |
19,071 |
|
|
|
|
Pro forma
adjustments |
|
|
3,547 |
|
|
|
9,054 |
|
|
|
|
Pro forma Adjusted
EBITDA: |
|
$ |
31,471 |
|
|
$ |
28,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow to Net Income
(Loss): |
|
|
|
|
|
|
Adjusted
EBITDA: |
|
$ |
27,924 |
|
|
$ |
19,071 |
|
|
|
|
|
Less: Cash interest expense |
|
|
4,205 |
|
|
|
3,786 |
|
|
|
|
|
Less Capital expenditures |
|
|
21,353 |
|
|
|
25,291 |
|
|
|
|
Free Cash
Flow: |
|
$ |
2,366 |
|
|
$ |
(10,006 |
) |
|
|
|
|
Add: Pro forma
adjustments |
|
|
825 |
|
|
|
(2,993 |
) |
|
|
|
Pro forma Free
Cash Flow: |
|
$ |
3,192 |
|
|
$ |
(12,999 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Point |
|
|
|
For Quarter Ended |
|
|
(in millions) |
12/31/2019 |
|
|
|
|
|
|
Calculation of Adjusted EBITDA: |
|
|
|
Net income |
$11 |
|
|
Interest expense |
4 |
|
|
Depletion, depreciation, and amortization |
18 |
|
|
Adjusted EBITDA |
$33 |
|
|
|
|
|
|
Reconciliation of Net Cash Provided by Operating
Activities to Adjusted EBITDA: |
|
|
|
Net cash provided by operating activities |
$29 |
|
|
Changes in working capital |
– |
|
|
Cash Interest Expense |
4 |
|
|
Adjusted EBITDA |
$33 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Free Cash
Flow: |
|
|
|
Adjusted EBITDA |
$33 |
|
|
Cash Interest Expense |
(4) |
|
|
Capital expenditures |
(10) |
|
|
Free Cash Flow |
$19 |
|
|
|
|
|
Contacts
Martyn Willsher – Chief Financial Officer(713)
588-8346martyn.willsher@amplifyenergy.com
Eric Chang – Treasurer(713)
588-8349eric.chang@amplifyenergy.com
Amplify Energy (NYSE:AMPY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Amplify Energy (NYSE:AMPY)
Historical Stock Chart
From Apr 2023 to Apr 2024